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Q: Laptop manufacturing costs ( Answered,   2 Comments )
Question  
Subject: Laptop manufacturing costs
Category: Business and Money
Asked by: kbsoftware-ga
List Price: $100.00
Posted: 18 Dec 2003 12:28 PST
Expires: 17 Jan 2004 12:28 PST
Question ID: 288420
I'm looking for a cost breakdown for the manufacturing of a mass-market, modern
laptop computer. The answer should include cost of parts (including
active matrix display, lithium/ion battery, case, etc) & cost of
assembly. An example of an ideal answer could be a case study of
mass-market laptop (e.g. Dell) manufactured by major Taiwanese
manufacturer (e.g. Quanta) w/ cost breakdown. Industry-standard
average costs (from reputable source) would also be sufficient.

Request for Question Clarification by jbf777-ga on 24 Dec 2003 09:02 PST
Parts for this kind of thing could vary based on quantity, if you're
trying to manufacture your own.  What would be your target quantity?

jbf777
GA Researcher

Request for Question Clarification by jbf777-ga on 24 Dec 2003 09:29 PST
I should have a breakdown for you on Monday of the typical price after
the last quantity break.  I.e., Dell and Gateway are manufacturing
thousands upon thousands of these things.  After a certain quantity,
there's no more price breaks.  This is the number I'll be supplying
(if it's OK).

Thanks,

jbf

Clarification of Question by kbsoftware-ga on 24 Dec 2003 18:54 PST
I think you're on the right track. The breakdown after the last
quantity break for a major manufacturer would be perfect. Thanks.

Request for Question Clarification by jbf777-ga on 25 Dec 2003 06:44 PST
Just want to confirm with you -- the costs I'd be getting are from one
or more manufacturers that are not necessarily Dell or Gateway-sized
manufacturers.  Either way, I would think the prices should be in the
same league. Is this OK?

Clarification of Question by kbsoftware-ga on 25 Dec 2003 16:25 PST
I think it would be okay if the manufacturers are not producing the
volume of Dell/Gateway, assuming that you'd be providing the costs and
quantities at, as you said, the last break point. Would it be safe to
assume that the relative parts cost would stay roughly the same for
the higher volume manufacturers?

Request for Question Clarification by jbf777-ga on 26 Dec 2003 17:33 PST
Well, it depends on whether I can get a quote that's comparable to the "big guns."

May I ask, are you looking to have these manufactured?  If so, it's
much easier for me to get information because I'd have a bona fide
reason to give them to request a quote.

Thanks.

Request for Question Clarification by jbf777-ga on 26 Dec 2003 17:51 PST
Sorry, I didn't answer your question correctly.

I'm not entirely positive of the relative cost difference, because I
don't know precisely what a Dell/Gateway is manufacturing these for. 
I do know, from my research thus far, that Dell, for instance, is
sourcing their parts from China (and I would venture to guess the
other bigger manufacturers are sourcing from similar places).  They do
some assembly in the united states, but their parts are mostly coming
from overseas as there's a substantial savings from getting parts
there.   One manufacturer(s) I'm dealing with says they're also
getting a good portion of their parts directly overseas; so in a
sense, that would be comparable.  But in this case, they're acting as
a kind of middleman to me or you, because they're giving a quote with
their share built-in.  This is as opposed to Dell or Gateway who is
the manufacturer (wholesale point) AND retail point.  I will see if I
can get information on what the manufacturer(s) (the ones I'm dealing
with) are seeing profit-wise from this deal.

For the $100 research price, I think a quote from one of these
manufacturers would be the closest I could come, as I'm not readily
seeing any case studies on notebook or laptop costs anywhere else
(although I will still look).

Clarification of Question by kbsoftware-ga on 26 Dec 2003 23:19 PST
I understand. This is for a product that would be manufactured so it
would be appropriate to obtain a bona fide quote. The actual device,
however, is a little different from a standard laptop -- it's really a
special-purpose laptop. Almost all of the components are identical to
what you'd find in a standard laptop -- the peripherals
(monitor,keyboard,trackpad), case, and power supply would be standard
components; only the motherboard circuitry is different. Hope this
helps.

Request for Question Clarification by jbf777-ga on 29 Dec 2003 13:58 PST
I've received a quote from a company that gets most of their parts in
the states.  I know what they're adding on to the price, so
essentially I have their raw cost on most of the main parts.  I have
an email in to some chinese manufacturers, but I have a feeling that
it will be a long time before I hear anything, if at all.
This particular manufacture says a specific-purpose laptop that you're
looking to build may not be out of their scope.

Do you think this will this suffice?

Clarification of Question by kbsoftware-ga on 29 Dec 2003 22:39 PST
Yes, this sounds sufficient. Can you also provide me with the contact
info for the other manufacturers so I can pursue those leads?
Answer  
Subject: Re: Laptop manufacturing costs
Answered By: jbf777-ga on 30 Dec 2003 10:30 PST
 
Hello again-

If you choose to rate this answer, please ask for any required
information or clarification before doing so.  Thank you for your
understanding.

The quote I received was from Technology Distribution Network
(http://www.tdn.net - Ken Gardner at 1-800-420-3636).

I have arranged the information in an Excel spreadsheet available for
download here:

http://68.15.21.151/uploads/researchers/LaptopCosts.xls

Figure an additional discount of between 2-3 points for quantities in
the thousands (that would require special arrangements with suppliers
such as Intel, for example).


Here are some additional, potential suppliers:

Overam (does overseas sourcing)
http://www.overam.com

Zhengzhou guchen trade co,. ltd (China)
http://www.ec21.com/co/g/guchen/index.html

Infotel (most parts coming from within the states)
http://www.infoteldistributors.com/login.php?osCsid=635172b0a253905edd93dfdfce40274c


EC21 Online Trade Directory is good place to find manufacturers,
suppliers, importers and exports:

EC21
http://www.ec21.com


Additional link:
Check out T. Pico International at http://www.tpicointernational.com,
a company that funds and manufacturers new ventures.


Search strategy (along these lines):
  laptop OR notebook costs
  wholesale notebooks OR laptops
  parts notebooks OR laptops
  notebook cost breakdown "case study"
Comments  
Subject: Re: Laptop manufacturing costs
From: harijs-ga on 24 Dec 2003 04:14 PST
 
You could try emailing info@elkogroup.com ; they are the largest
Eastern-European distributor of computer components (including laptop
components), and they recently held a seminary for OEMs where (if I
understood correctly) they gave exactly the information that you are
interested in. Unfortunately, I was unable to attend this seminary
myself, however, if you email them, perhaps they will be willing to
give this cost breakdown to you.
Subject: Re: Laptop manufacturing costs
From: kbsoftware-ga on 24 Dec 2003 18:56 PST
 
Thank you for the lead!

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